Corporations may buy back their own stock for any of the following reasons except to:
A)Avoid a hostile take-over.
B)Have shares available for a merger or acquisition.
C)Have shares available for employee compensation.
D)Maintain market value for the company stock.
E)Allow management to assume the voting rights.

Question

Quizplus · Accepted Answer

Corporations do not buy back their own stock to allow management to assume the voting rights. In fact, buying back stock reduces the number of outstanding shares, and therefore, the voting power of shareholders including management.

Corporations May Buy Back Their Own Stock for Any of the Following